PT BFI Finance Indonesia Tbk : Building the Next Chapter

2022

Integrated Annual Report PT BFI Finance Indonesia Tbk

2022 Integrated Annual Report

COVER STORY

A multitude of technological advancements have triggered a wave of transformation in society, touching every aspect of work, social interaction, and daily life. The increasing adoption of digital technology in our lives has rendered many processes that were traditionally complicated and time-consuming to something that can be done quickly and with ease. BFI Finance believes that to remain competitive in the digital era, one has to have the courage to take advantage of the progress taking place around us.

By harnessing digital technology, BFI Finance has carried out a comprehensive transformation across all levels of the organization, and carries on with the process. To always be at the forefront, the Company is pursuing a strategy that integrates every aspect of its business into an operation

that is more streamlined, efficient, and based on advanced data analytics capability. This new, more comprehensive business paradigm is reflected

in the dashboard that acts as the main design element on the cover of this 2022 Integrated Annual Report.

Along with its business transformation, BFI Finance also made new history in 2022, its 40th year, by recording the most successful financial performance to date. The logo of BFI Finance

40 Years - Building the Next Chapter displays BFI Finance's characteristics that continue to be forged over time. BFI Finance is here to serve customers in the financing industry in Indonesia as an institution that is trustworthy and flexible, one that serves with creativity and confidence, but remains humble at heart.

DISCLAIMER

PT BFI Finance Indonesia Tbk (BFI Finance or the Company) has ensured the accuracy of the information contained in this Integrated Annual Report. However, the Company does not guarantee the appropriateness, accuracy, usefulness or any other matter regarding this information. This Integrated Annual Report contains some forward-looking statements about the Company's future expectations, plans, and strategies that are not historical facts. They are based on current expectations, estimates, forecasts, and projections about the business and environment in which the Company operates and beliefs and assumptions made by management. As these expectations, estimates, forecasts, and projections are subject to a number of risks, uncertainties, and assumptions, actual results may differ materially from those projected. The Company, therefore, cautions readers not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments. Any reliance placed on the Integrated Annual Report and Financial Statements is done entirely at the risk of the person placing such reliance. Additionally, numbers represented throughout this Integrated Annual Report have been rounded up to the closest million or billion rupiah, and as such, there may be discrepancies in percentage change calculations compared to when calculated using full figures from the Annual Financial Statements.

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About This Report

TABLE OF CONTENTS

3 Cover Story

ABOUT THIS REPORT

1. Building the Next Chapter
2. Theme Continuity
3. Introduction to Integrated Reporting

1. Summary of Integrated Annual Report 2022

1. Summary of 2022 Sustainability Performance

1. 2022 Key Highlights
   01 2022 PERFORMANCE HIGHLIGHTS

1. Key Financial Highlights

1. Share Highlights

21 • Comparison between Share Price

Performance of BFI Finance (BFIN) and the Composite Share Price Index (IHSG) in 2022

1. • Corporate Action
2. • Suspension and/or Delisting

1. • Structure of Shareholders
2. • Dividend Payment History
3. Bonds Highlights
4. Important Events in 2022

1. Awards and Recognition
   02 REPORTS TO STAKEHOLDERS

1. Report of the Board of Commissioners

1. Report of the Board of Directors

1. Statement of the Board of Commissioners on the Responsibility for the 2022 Integrated Annual Report of PT BFI Finance Indonesia Tbk
2. Statement of the Board of Directors on the Responsibility for the 2022 Integrated Annual Report of PT BFI Finance Indonesia Tbk
   03 COMPANY PROFILE

1. General Company Information

1. Company Vision and Mission
2. Sustainability Vision and Mission
3. Brief Company History

58 Milestones

1. Core Values and Corporate Culture

1. Corporate Identity
2. Business Activities

1. Map and Operational Network

1. Organization Structure

1. Workforce Profile

73 Board of Commissioners Profiles

78 Board of Directors Profiles

83 Sharia Supervisory Board Profiles

85 Committees under the Board of

Commissioners Profiles

85 • Audit Committee

1. • Risk Oversight Committee
2. • Nomination and Remuneration Committee
3. Senior Management Profiles

1. Corporate Structure
2. Subsidiaries and Associated Entities

1. Share Ownership Composition

100 Controlling Shareholder Profile

1. Ultimate Beneficial Owners
2. Chronological Listing of Shares and Changes in Number of Shares

1. Chronological Listing of Other Securities

1. Public Accountant Services

107 Capital Market Supporting Institutions and Professions

04 BUSINESS SUPPORTING UNITS

110 Information Technology

1. Network and Operational Development

1. Customer Service

05 MANAGEMENT DISCUSSION AND ANALYSIS

122 Industry Overview

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2022 Integrated Annual Report

1. Business Review

1. Marketing

1. Financial Performance Review

1. • Consolidated Statement of Financial Position

154 • Consolidated Statement of Profit or Loss and Other Comprehensive Income

1. • Consolidated Statement of Cash Flows
2. Analysis of Key Ratios

1. Comparison of Achievements Against Targets in 2022
2. Capital Structure (Capital Adequacy)

1. Material Investment on Capital Goods
2. Events After the Reporting Period
3. Dividends

1. Use of Public Offering Funds
2. Material Investment, Divestment, Merger & Acquisition, and Debt or Capital Restructuring

1. Transactions with Potential Conflicts of Interest and Related Parties
2. Impact from Regulatory Changes on the Company
3. Accounting Policy Changes
4. 2023 Business Prospects
   06 GOOD CORPORATE GOVERNANCE

1. Good Corporate Governance Report

1. Sustainability Governance

1. General Meeting of Shareholders

1. Board of Commissioners

1. Board of Directors

1. Performance Assessment of the Board of Commissioners and Board of Directors
2. Meetings of the Board of Commissioners, Board of Directors, and Joint Meetings of the Board of Commissioners and Board of Directors

1. Sharia Supervisory Board

1. Audit Committee

1. Risk Oversight Committee

1. Nomination and Remuneration Committee

1. Corporate Secretary

1. Internal Audit

1. Internal Control System

1. Risk Management

1. Legal Cases

1. Administrative Sanctions
2. Access to Information and Communication

1. Investor Relations

1. Compliance

252 • Anti-Money Laundering and Combating the

Financing of Terrorism (AML-CFT)

254 Code of Conduct and Corporate Culture

1. Management and Employee Stock Ownership Program (MESOP)
2. Information Disclosure Policy

1. Whistleblowing System
2. Anti-CorruptionPolicy
3. Procurement Policy

1. Transparency of Financial and Non-Financial Conditions Not Disclosed in Other Reports
2. Statement of Application of the Guidelines for Public Corporate Governance
   07 SUSTAINABILITY

1. Sustainability Strategy

1. Human Capital

1. Environmental Performance

1. Social Performance

288 Responsibility for Sustainable

Product/Service Development

08 SUPPORTING DATA

1. Addresses of Outlets

1. Glossary
   09 ANNUAL FINANCIAL STATEMENTS

314 Consolidated Financial Statements for the Year Ended 31 December 2022 and Independent Auditors' Report

APPENDICES

426 Summary Report of the Sustainable Financial Action Plan (RAKB)

1. Feedback Form
2. Cross Reference OJK Circular
   No. 16/SEOJK.04/2021 - Form and Content of
   Annual Reports of Issuers or Public Companies

440 Cross Reference OJK Regulation

No. 51/POJK.03/2017 - Implementation of

Sustainable Finance for Financial Services Institutions, Issuers, and Public Companies

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